Wall Street Overview

Stocks fell sharply in volatile trading at the close on Thursday, Oct. 11, pushing the Dow's two-day losses to more than 1,300 points and sending the Nasdaq into correction teritorry a day after tech stocks went into a tailspin.

Both the Dow and S&P 500 on Wednesday logged their largest losses on a percentage basis since Feb. 8.

The Dow Jones Industrial Average fell 546 points, or 2.1%, to 25,053, the S&P 500 was down 2%, and the Nasdaq fell 1.25%. Leading the Dow lower were Pfizer Inc. (PFE) , McDonald's Corp. (MCD) and Chevron Corp. (CVX) . Energy giant Chevron declined after oil prices fell following an increase in U.S. crude supplies for a third straight week.

"Perhaps some capitulation has been met with the heavy concentration of selling that occurred late in the day, but it remains to be seen. There needs some sideways action for a bit before calling an 'all clear'," Lang said.

Jim Cramer, founder of TheStreet, wrote on Real Money that the selloff on Wednesday was driven by "pure naked fear."

During the selloff on Wednesday, the yield on the 10-year Treasury note had risen to as high as 3.23%. Early Thursday, the 10-year was yielding 3.15%. At the end of 2017, the 10-year note was yielding 2.4%.

Bond yields have been rising as recent strong U.S. economic data have investors anticipating the Federal Reserve will raise interest rates at a pace faster than expected.

Donald Trump suggested the Fed was to blame for the stock market selloff. The central bank has raised interest rates three times so far in 2018.

"I think the Fed is making a mistake. They're so tight. I think the Fed has gone crazy," Trump said Wednesday.

The Consumer Price Index for September - an important reading on inflation - was 0.1%, with the core rate the same. Core CPI on a year-to-year basis rose 2.2%, unchanged from August, and was slightly below economists' forecasts of 2.3%.

Walgreens Boots Alliance Inc. (WBA) posted fiscal fourth-quarter earnings of $1.48 a share, beating estimates by 3 cents, but sales of $33.44 billion, an increase from $30.15 billion a year earlier, came in shy of forecasts. The stock fell 1.9%.

Apple will pay $300 million in cash for the transaction and prepay $300 million for Dialog products to be delivered over the next three years.

The deal comes almost a year after Dialog lost a significant amount of its market capitalization on reports that Apple, which accounts for more than 70% of its revenue, could begin designing its own power-management chips.

Elon Musk denied a Financial Times report that said James Murdoch was the favorite to be the next chairman of Tesla Inc. (TSLA) . Shares fell 1.8% to $252.23.

Two people briefed on the discussions told the Financial Times that Murdoch, the CEO of Twenty-First Century Fox Inc. (FOXA) and a non-executive director of Tesla, was the lead candidate for the chairman role, which is required by the Securities and Exchange Commission to be independent chairman. Another person told the Financial Times that external options were still being considered.

Musk initially refused to comment. But several hours after the report was published Musk tweeted, "This is incorrect."

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Square Inc. (SQ) fell 11% on Thursday, after plummeting 10.1% during the previous session following news that Chief Financial Officer Sarah Friar would be leaving the payments company. Friar will become CEO of San Francisco-based social networking service NextDoor.

Costco Wholesale Corp. (COST) rose 0.4% after the warehouse retailer said comparable-store sales rose 8.4% in September, beating estimates that called for an increase of 5.1%. U.S. same-store sales rose 10.4%, while international comparable sales gained 4.3%. E-commerce sales jumped 28.6% in September.

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